A Los Angeles-based unlicensed trader has been brought to justice for his role in a $500,000 fraudulent high yield investment program scheme. Jessie Tolbert, 38, of Bastrop, Louisiana, pleaded guilty today in federal court in Los Angeles.
According to court documents, in December 2011, Tolbert and his co-conspirators, including Eriq Brye and Greg Preston, placed an advertisement online for an investment opportunity. Undercover federal agents responded to this advertisement, and during several weeks of email and telephone communications, Tolbert and his co-conspirators informed the agents that a spot recently had opened up on a high yield investment program they purportedly were running.
The program promised to generate $30 million in 30 days, but Tolbert did not actually run an investment program. In an effort to induce the undercover agents to invest in the program, Tolbert and his co-conspirators made numerous material misrepresentations, including false and repeated guarantees of the success of the proposed trade.
Tolbert had never applied for, nor received, a license with any federal agency related to the financial industry. His co-conspirators, Eriq Brye and Greg Preston, are also involved in the scheme, with Brye being a fugitive and Preston having pleaded guilty in May 2013.
The scheme was investigated by the FBI and prosecuted by Assistant Chief Benton Curtis and Trial Attorneys Kyle Maurer and Alex Porter of the Criminal Division’s Fraud Section.
Tolbert is scheduled to be sentenced on Oct. 20, 2014, on one count of conspiracy to commit wire fraud and one count of wire fraud. The case serves as a reminder of the importance of verifying investment opportunities and the consequences of engaging in fraudulent activities.
An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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- Amy Evangelista, Tax Fraud, California 2023 · Louisiana
- Jennifer Choi, HBO Fraud Scheme, California 2024 · Louisiana
- April Myres, Mail Fraud, California 2017 · Louisiana
Key Facts
- State: California
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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